Coinbase stock are rising as Bitcoin soars. The major exchange also wants to acquire Latin America’s largest crypto brokerage.
American cryptocurrency exchange Coinbase (NASDAQ: COIN) saw its shares skyrocket on Monday, coinciding with the rally seen among several digital assets. These include Ether (ETH), Cardano (ADA), Solana (SOL), and most especially Bitcoin (BTC), which have been on the rise lately. Coinbase (COIN) stock has gained 7% during pre-New York trading, while Bitcoin is up 6.5% in the past 24 hours and surpasses $48,000.
Bitcoin has now hit a price level not seen since early January. It has also added $10K in the past two weeks. Additionally, BTC’s recent price increase has now erased the double-digit annual loss for the top cryptocurrency. Meanwhile, analysts see more room for profit.
According to analysts at Goldman Sachs, Coinbase Stock closely reflects the movement of Bitcoin’s price. Because of this price correlation, technical factors that suggest future BTC price appreciation also suggest a rise in Coinbase stock.
Also weighing in on the price relationship between COIN and BTC, Marcus Sotiriou, an analyst at digital asset broker GlobalBlock (BLOK) said:
“Bitcoin is facing heavy resistance, but if it can hold above $46,000 (almost marks the yearly open) for a few days, I predict a move to $52,000, here it is “Bitcoin is facing heavy resistance, but if it can hold above $46,000 (nearly marking the yearly open) for a few days, I predict a move to $52,000, here it is next key level of resistance.”
Volatility could still be a big hit between Coinbase stocks and Bitcoin price correlation, according to analysts.
While there are positive views on Coinbase stock due to the positive BTC price movement, analysts still recommend caution. This is because shares in the crypto exchange are still down 20% so far in 2022. Therefore, expect COIN’s stock performance to be significantly lower at $314 in March. At the end of In 2021, COIN trades at $395.
Another reason why Coinbase’s stock performance expectations are down is due to the volatility of BTC. According to Citi analyst Peter Christiansen in a note published last week, “your estimate and target price base are lower following the recent volatility in digital asset prices, as well as your plan to company to scale through a major investment in 2023.”
Christianen also suggests that Coinbase stock may remain more bullish beyond the influence of the BTC price. He added:
“While recent crypto volatility is likely to hamper trading activity [year-to-date], we assume that strong Subscriptions and Services growth… improves revenue mix in 2023.”
The positive growth in Coinbase stock also comes amid reports that the US crypto exchange is looking to make a significant switch. According to The Motley Fool, Coinbase is close to reaching an agreement to buy Latin America’s largest cryptocurrency brokerage, Mercado Bitcoin. First reported by Bloomberg, the deal is for Coinbase to buy 2TM, a Brazilian unicorn-owned company that has a controlling interest in Mercado Bitcoin. The expectation is that Coinbase will close trading with 2TM in April.